Disclaimer - FOR EDUCATIONAL PURPOSES ONLY, I AM NOT A FINANCIAL ADVISOR
These trades are under the assumption that this is wave 1 according to Elliot Wave Theory. We have retraced to .618 from the impulse move upwards, next Fibonnacci support is at around $140. How do we trade this?
Risky
- Wait for some sort of bounce/buy volume/crossover of oscillators IF there is then start averaging your buys SLOWLY (possible 90% - 150% gain) - This is what I am doing
Conservative
- Wait for the breakout above wave one with volume confirmation/crossover of oscillators, IF there is then start scaling in your buys SLOWLY (possible 20% - 50% gain)
- Wait for a 100% retracement and wait for buy in volume/crossover of oscillators IF there is then start scaling in your buys SLOWLY (highest reward to risk buy will also require you to be the most patient IF it ever retraces to those levels)
These are very good risk to reward trades depending on individual pain tolerance/stop losses. Always trail your stop losses to secure profits.
These trades are under the assumption that this is wave 1 according to Elliot Wave Theory. We have retraced to .618 from the impulse move upwards, next Fibonnacci support is at around $140. How do we trade this?
Risky
- Wait for some sort of bounce/buy volume/crossover of oscillators IF there is then start averaging your buys SLOWLY (possible 90% - 150% gain) - This is what I am doing
Conservative
- Wait for the breakout above wave one with volume confirmation/crossover of oscillators, IF there is then start scaling in your buys SLOWLY (possible 20% - 50% gain)
- Wait for a 100% retracement and wait for buy in volume/crossover of oscillators IF there is then start scaling in your buys SLOWLY (highest reward to risk buy will also require you to be the most patient IF it ever retraces to those levels)
These are very good risk to reward trades depending on individual pain tolerance/stop losses. Always trail your stop losses to secure profits.
Trade active:
Comment:
Time is not considered in this analysis
Trade closed: stop reached:
I was stopped out at $175 for about a 6.5% gain from $164. Maximum you could have profited so far was around about 18% depending on where you entered and if you sold at the top of this swing. I wanted at least a 5% gain from this trade. I Will update when I re enter.
Comment:
In my opinion we are going into an extended correction. I am watching the .618 very closely as this aligns with a 1 to 1 fib extension of 1, A, B whilst also making a double bottom around $159 - $162. I will be looking to ladder my long position at this range and will have a tight stop loss once positions are filled. Good luck!
Comment:
No trade has been entered yet on LTC as I was paying very close attention to what BTC was going to do. I am waiting for BTC to finish correcting. Will enter in a trade at where 2 is at the double bottom and have a tight stop loss. This is exactly how I am trading BTC as well. Good Luck!